Spain Industry structure Existing capacity and generation
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- Alison Welch
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1 Spain Industry structure Spain was one of the first countries in Europe to have liberalised its electricity sector. Generation facilities in Spain operate either under the Spanish ordinary regime (mostly conventional energy facilities) or the Spanish special regime (consisting of small or renewable energy facilities). Special regime generators supply power at fixed tariffs (which are generally higher than the Spanish market prices), while ordinary regime generators provide electricity at market prices to the Spanish wholesale pool and under bilateral contracts to qualified consumers and other suppliers. Empresa Nacional de Electricidad, S.A. (Endesa) and Iberdrola are two of the leading electricity generation companies in Spain. Energias de Portugal (EDP), Unión Fenosa, Hidrocantábrico and E.ON, along with Endesa and Iberdrola, are the main electricity distributors in Spain. Red Eléctrica de España (REE) is the sole transmission system owner and operator in Spain. Transmission companies and regulated distributors are required to provide network access to all consumers that have chosen to buy power in the free market, for they pay an access tariff to the distribution companies. The liberalised suppliers are free to set a price for their consumers. Electricity generators and liberalised suppliers or qualified consumers may also enter into bilateral contracts without participating in the wholesale market. With the coming into force of the new legislation in July 2009, the integral tariff system has been replaced by a last-resort tariff system. The five last-resort suppliers Endesa, Iberdrola, Unión Fenosa, Hidrocantábrico and E.ON are required to supply electricity at a regulated tariff to the last-resort consumers (low-voltage electricity consumers whose contracted power is less than or equal to 10 kw). Since the coming into force of the new legislation, electricity marketing companies instead of distributors have been supplying electricity to consumers, while the distribution companies continue to operate the facilities. OMEL is the electricity market operator, while Comisión Nacional de Energía (CNE) is the energy sector regulator in Spain Existing capacity and generation Spain had a total installed capacity of over XX GW as of December The capacity has grown at a compound annual growth rate (CAGR) of about XX per cent since Spain is heavily dependent on thermal power plants to meet its electricity needs. However, in the last five years, it has been ramping up its renewable energy resources, especially wind energy, to combat the effects of climate change. 320
2 Europe Table : Installed capacity (MW) Ordinary regime * Hydro Nuclear Coal Fuel/gas Combined cycle Total ordinary regime Special regime Wind Rest of special regime Total special regime Annual growth rate (%) - *Preliminary figures Table : Electricity generation and consumption (GWh) Ordinary regime * Hydro Nuclear Coal Fuel / gas Combined cycle Ordinary regime gross generation Special regime Wind Rest of special regime Special regime gross generation Total generation Annual growth in generation (%) Imports Exports Consumption Annual growth in consumption (%) * Preliminary figures Global Transmission Research 321
3 Expected addition to generation capacity Spain plans to add about MW of capacity over the five-year period of , of which around MW will be based on renewable energy. Table : Expected addition to generation capacity (MW) Capacity addition (MW) *Estimated Source: Ministry of Industry, Tourism and Commerce, Spain; Global Transmission Research * Existing transmission network Spain has a total transmission line length of about km. It has added over km of lines in the last six years, representing a growth rate of over per cent. Spain has 18 high voltage cross-border links with its neighbouring countries: 10 with Portugal; seven with France; and one with Morocco. Table : Transmission line length (km) Voltage (kv) Peninsular network Extra-peninsular network <132 Table : Transformer capacity (MVA) Peninsular system (400 kv/hv) Canary Islands Balearic Islands Annual growth rate (%) HV: High voltage 322
4 Europe Table : Number of transformers* Voltage (kv) *. Source: Red Eléctrica de España Table : Existing cross-border electricity interconnections Interconnection Voltage (kv) Type Vic (Spain) Baixas (France) Single circuit Hernani (Spain) Argia (France) NA Arkale (Spain) Argia (France) Single circuit Biescas (Spain) Pragnères (France) Single circuit Irún (Spain) Errondenia (France) Single circuit Benós (Spain) Lac d Oo (France) Single circuit Adrall (Spain) Margineda (France) NA Brovales (Spain) Alqueva (Portugal) Single circuit Cedillo (Spain) Falagueira (Portugal) Single circuit Cartelle (Spain) Alto Lindoso (Portugal) Double circuit Aldeadávila (Spain) Alto Lindoso (Portugal) Single circuit Aldeadávila (Spain) Lagoaça 3 (Portugal) Single circuit Aldeadávila (Spain) Lagoaça 2 (Portugal) Single circuit Saucelle (Spain) Pocinho (Portugal) Single circuit Las Conchas (Spain) Lindoso (Portugal) Single circuit Puerto de la Cruz (Spain) Melloussa (Morocco) Double circuit NA: Not available Source: European Network of Transmission System Operators for Electricity; Red Eléctrica de España Expected addition to transmission network Spain plans to add around km of transmission lines and MVA of high voltage transformer capacity between 2011 and About new substations at 400 kv and 220 kv levels are planned to be built. The upgradation of high voltage substations is also planned during the same period. Global Transmission Research 323
5 Table : Expected addition to transmission line length (km) Voltage (kv) Total Note: Line length addition includes upgradation and modernisation of lines. Source: Ministry of Industry, Tourism and Commerce, Spain Table : Expected addition to transformer capacity (MVA) Voltage (kv) Total Source: Ministry of Industry, Tourism and Commerce, Spain; Global Transmission Research Table : Expected new and refurbished substations (No.)* Voltage (kv) New substations Upgradation *For the period Source: Ministry of Industry, Tourism and Commerce, Spain 324
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